The takeover drama at Currys is cooling down as the bidder walks away after a £742 million offer
THE takeover drama at Currys cooled yesterday when US bidder Elliott Advisors walked away.
It had tried to make the electrical chain from fridges to computers private with a reduced bid of £742m.
But Currys dismissed that, saying the 67 cents per share offer “significantly undervalued the company and its prospects”.
The investment company – which owns Waterstones bookstore and has a stake in noodle chain Wasabi – suggested Currys was refusing to open the door to talks.
Elliott suggested the chain’s failure to provide access to its figures left it unable to “make a better offer based on available public information.”
Shares in Currys fell as much as 11 percent after Elliott’s withdrawal, but recovered to close down 7.47 percent, or 4.82p, to 59.68p.
Peel Hunt analysts said they believed a board would only accept an offer of 80 cents per share.
They stressed that Currys is still interested in taking over Chinese online giant JD.COM, which has a deadline of next Monday to make a bid or walk away.
This is known as a ‘pusu’ – a ‘cease or silence’.
Currys’ largest shareholder Redwheel backed the board’s decision to reject Elliott’s bid – saying it highlighted a “wider problem with the UK stock market”.
Parts of it are valued “significantly lower than the actual value of the companies”.
Currys was formed in 2014 from a £3.8 billion merger between Carphone Warehouse and Dixons Retail.
It went back to its roots and called itself Currys, after founder Henry Curry, who started the company in 1884 as a bicycle and gramophone dealer.
It posted a turnover of £9.5 billion last year and raised profit expectations to £115 million.
The share price suffered as the lockdown boom in office equipment faded.
Horny hot rods
HORNBY, the model train maker that counts Rod Stewart and Jools Holland as fans, has struck a deal to buy The Corgi Model Club.
The Club offers members who sign up for a monthly subscription reissued models of Corgi diecast cars, including a miniature version of James Bond’s Aston Martin DB5.
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Hornby said it would add £2 million in revenue per year to its operations and more than 6,000 active subscribers.
It will pay up to £600,000 to acquire the business from entrepreneur Jim Lewcock.
Mike Ashley’s Frasers Group is now the third largest investor in the model train manufacturer.
Bitcoin’s wave of new rule
Bitcoin’s price soared past a record high of £55,000 as the digital currency surged 70 percent this year.
The price rose after the US allowed institutional investors to use exchange-traded funds.
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The London Stock Exchange said yesterday it would accept requests to trade crypto-backed notes in that way for the first time.
It means that pension funds can invest in assets linked to cryptocurrencies, thus tracking the rise and fall of digital currencies.
But the financial watchdog will still ban individuals from exchange-traded crypto products because “crypto assets carry high risk and are largely unregulated.”
The Financial Conduct Authority believes that notes traded on crypto exchanges are “unsuitable for private consumers due to the harm they entail”.
It warned: “Those who invest should be prepared to lose all their money.”
The last crypto rally was followed by dramatic crashes.
For-hire businesses are shutting down
Vacancies have fallen at the fastest pace since 2021 as companies implement hiring freezes to tackle rising costs.
The demand for permanent staff fell last month, according to a study by KPMG and the Recruitment and Employment Confederation (REC).
Temporary vacancies also fell for the first time in three and a half years.
Wage increases are now at their slowest pace in three years.
The Bank of England has said it is concerned about the rises fueling inflation.
Ghoulies bump up lingerie
SALE at Ann Zomers rose after shoppers returned to stores for daring Halloween outfits and role-playing costumes.
The lingerie retailer said sales increased by 4.5 percent to £104.6 million in the last 12 months.
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The company was also helped by expanding its clothing range to include dresses, skirts and leggings.
The company recently launched fast delivery of sex toys and lingerie via Deliveroo.
But the accounts show online sales were hit last year after Google stepped up security controls, blocking adults from seeing the website unless they were over their age.
Losses at the retailer – which restructured two years ago to reduce rental costs – have fallen from £21.9m to £3.8m.
It now plans to open more stores.
The results come a year after founder Jacqueline Gold died and her sister Vanesa was appointed executive chairman.
PRIMARK has become the latest retailer to increase wages in the battle to retain staff.
The workers will receive a minimum of £12 an hour – an increase from £11 – and a 15 per cent shopping discount.
London staff will receive £12.56 per hour – a 9 per cent increase from £11.51.
Vanquis shock to the markets
SHARES in Vanquis Banking Group, formerly known as Provident Financial, halved in value following a shock profit warning.
The share price drop values the company at £318.5m after it said profits would be “substantially lower” than expected.
Vanquis said it had to spend more on administration after a large number of customer complaints – although the majority of these were not accepted.
The financial watchdog launched an investigation into the market to test whether motorists were being ripped off with car finance.
Boss Ian MacLaughlin said the company must “address short-term challenges but remains confident that the group’s new strategy will deliver good results”.